By EARYEL BOWLEG

Tribune Staff Reporter

ebowleg@tribunemedia.net

ATTORNEY General Ryan Pinder announced that government will launch a catastrophic property insurance initiative to help vulnerable people.

He did not provide significant details on the plan, such as how it will be funded.

During his budget contribution in the Senate, he said the initiative is being developed in partnership with the Bahamas Insurance Association, a “global insurance leader,” and the government.

“We can all agree that given climate change and the increase in frequency and severity of hurricanes that catastrophic property insurance has been priced at a point that is out of reach for many Bahamians and most of the vulnerable in our society,” he said.

“The aim of this project is to significantly mitigate the strain on both public finances and private damage following natural disasters, allowing for a more efficient and effective disaster relief efforts.”

“The government, in collaboration with local private sector partners has been engaging in discussions, actuarial studies and framing out a proper insurance product to expedite the development and rollout of a new parametric insurance product in The Bahamas.”

He said the initial phase of this programme will focus on people who are uninsured and lack adequate insurance coverage for their homes, are Bahamian citizens residing in this country, are pensioners and occupy homes valued under $300,000.

He said the programme will extend coverage to registered farmers and fishermen, given the need to ensure resilience in this sector to achieve food security.

“The parametric nature of the insurance policy will ensure prompt and efficient payouts upon the occurrence of specific natural events, streamlining the recovery process,” he said, adding that the government hopes to launch the product this year.

He said a memorandum of understanding outlining the key terms and commitments of the participating parties is expected to be signed shortly.

“We propose to have a private sector component of the management and administration of this programme,” he said. “We are also considering establishing an independent insurance company to offer this product because what we would like to do is see this as a model for the region and have this programme that originates in The Bahamas, formed in The Bahamas, capitalised in The Bahamas, is operated in The Bahamas, but is distributed through the entire Caribbean region.”

He added that the government is committed to finalising the concept and determining the optimal funding model to ensure its sustainability and effectiveness.